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Annual Report 2020

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Annual Report 2020 ANNUAL REPORT 2020 Corporate responsibility and sustainable development BUSINESS REVIEW REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS GOVERNANCE REMUNERATION REPORT CORPORATE RESPONSIBILITY ANNUAL REPORT 2020 CONTENTS CORPORATE RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT Introduction Environmental responsibility Social responsibility Good governance 1. INTRODUCTION 3 Occupational safety and Corporate responsibility GRI disclosures – FINGRID DELIVERS. RESPONSIBLY. the safety of the main grid 39 Materiality assessment and Fingrid’s social responsibility responsibility targets 4 targets 2025 and 2035 44 2. ENVIRONMENTAL RESPONSIBILITY 6 4. GOOD GOVERNANCE 46 See all annual Climate 6 Openness 46 Circular economy and High-quality corporate report publications material efficiency 14 responsibility management 48 online Protection of nature values Finance – owners and financers 50 and biodiversity 15 Working for security of supply 51 Fingrid’s environmental Fingrid’s governance targets FINGRID.FI/EN/ANNUALREPORT2020 responsibility targets 2025 2025 and 2035 52 and 2035 18 5. CORPORATE RESPONSIBILITY 3. SOCIAL RESPONSIBILITY 21 GRI DISCLOSURES 53 Personnel 21 Reporting principles 53 Economy – society 28 Independent assurance statement 55 Stakeholders and customers 33 Corporate responsibility Supply chain 38 GRI disclosures 57 2 BUSINESS REVIEW REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS GOVERNANCE REMUNERATION REPORT CORPORATE RESPONSIBILITY ANNUAL REPORT 2020 1. INTRODUCTION – FINGRID DELIVERS. RESPONSIBLY. When managing corporate responsibil- Moving towards a clean electricity sys- tations of personnel, customers and oth- ity, it is important to select the material tem must take place without endanger- er stakeholders and involving them are an topics that the company wishes to im- ing the proper functioning of society. It is essential part of our responsible business Main goal: pact. Fingrid has decided to examine its Fingrid’s job to ensure that everyone gets practices. We regularly chart our stake- corporate responsibility targets from the their electricity, disturbance free. The im- holders’ opinions, and engage in dialogue climate perspective of environmental responsi- portance of electricity transmission relia- and cooperate with them in a number of CORPORATE RESPONSIBILITY bility, social responsibility and good gov- bility is illustrated by the fact that the cost ways. AND SUSTAINABLE DEVELOPMENT change ernance, in this way responding to our of a nationwide blackout to customers and operating environment’s major upheav- society at large would be in the region of Our special standing in society obligates mitigation. Introduction al, the transformation of the power sys- EUR 100 million for each hour of outage. us to operate very cost-effectively. Fingrid Environmental responsibility tem. The power system transformation is known for its cost-effectiveness: grid calls for major changes in the structures The company’s other key improvement service fees are among the least expen- Social responsibility of electricity production, electricity net- areas impacting climate change and the sive in Europe and this is something that works and the electricity market. Fingrid environment are the reduction of elec- we work to maintain. We are a responsible Good governance will move forward with these changes and tricity transmission losses and improving taxpayer and a strong investor in Finland, develop the main grid together with our energy efficiency. Our goal is to achieve employing hundreds of people each year, Corporate responsibility GRI disclosures stakeholders so that Finland can achieve the maximum possible recycling rate in addition to our own personnel. We are its goal of climate neutrality by 2035. for materials being decommissioned at responsible for the safety of the main grid worksites and to protect nature val- and service providers, and want to ensure ENVIRONMENTAL RESPONSIBILITY ues and biodiversity in transmission line that the entire supply chain employs re- Fingrid’s most significant sustainability right-of-ways. sponsible practices action is its climate change mitigation efforts. We make sure that the grid in- SOCIAL RESPONSIBILITY The basis for GOOD GOVERNANCE Responsible busi- vestments for connecting clean electric- our corporate responsibility is an open, ness practices and procurement practices ity production and consumption are car- collaborative, renewing and high-per- form the foundation for corporate respon- ried out on schedule. Increasing strongly forming work community, where the sibility. Corporate responsibility and com- weather-dependent renewable power well-being of our competent personnel pliance management is integrated with production also requires the modernisa- is secured in a safe environment. The Fingrid’s management system and risk tion of the electricity market, including well-being of the personnel inevitably management practices. Our entire work the renewal of the balancing between reflects on customers and other stake- community is committed to our respon- production and consumption and in- holders. As a transmission system oper- sible practices, which are steered by the creasing demand-side management. ator, we engage with many parties who company’s Code of Conduct, policies and have different expectations of our op- guidelines. Responsibility is one of our key erations. Being responsive to the expec- values and an integral part of our compa- ny’s corporate culture and strategy 3 BUSINESS REVIEW REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS GOVERNANCE REMUNERATION REPORT CORPORATE RESPONSIBILITY ANNUAL REPORT 2020 MATERIALITY ASSESSMENT AND RE- Updating the materiality assessment SPONSIBILITY TARGETS in 2020 Material impacts of Fingrid’s operations Fingrid has identified the key corporate The foundation for corporate responsi- responsibility issues in its strategy and bility, the materiality assessment, recog- VERY Climate change IMPORTANT basic business. The company has set cli- nises and assesses the impacts of Fin- Reliability and mate and environmental targets, social grid’s operations on the economy, people security of the responsibility targets and good govern- and the environment, the operating envi- electricity system CORPORATE RESPONSIBILITY ance targets for them. ronment, issues raised by stakeholders, Well-functioning AND SUSTAINABLE DEVELOPMENT legislation and the industry’s trends. The electricity market We are also involved in promoting the identified corporate responsibility issues Trust of stakeholders Introduction Circular economy and Customer UN’s Sustainable Development Goals have been prioritised based on the signif- material efficiency satisfaction Business ethics and Environmental responsibility (SDGs). Out of the 17 goals, the ones icance of the impacts of Fingrid’s opera- compliance Protection of pertaining to energy, infrastructure and tions and the views of stakeholders. nature values Occupational safety Social responsibility climate actions are the most important and biodiversity FROM SOCIETY’S POINT OF VIEW POINT SOCIETY’S FROM Responsible sourcing practices for us. In 2019, we identified as material topics Personnel well-being Good governance in Fingrid’s operations 1) an open, collab- In 2016, Fingrid signed the UN Global orative, renewing and high-performing FAIRLY IMPORTANT FROM FINGRID’S POINT OF VIEW VERY IMPORTANT Corporate responsibility GRI disclosures Compact initiative and committed to its work community, 2) the company’s Code principles on human rights, labour, the of Conduct, 3) the financial result, 4) environment and anti-corruption. stakeholders’ trust, 5) procurement prac- Fingrid promotes in particular these UN’s Sustainable Development Goals tices, 6) development of the main grid below. The greatest societal impacts of into a platform for a clean power system, Fingrid’s operations are related to miti- 7) reliability of the electricity system and gating climate change, the security and safety, and 8) a well-functioning electric- safety of the electricity system and a ity market. well-functioning electricity market. During 2020, we updated our materiality Responsibility targets assessment, highlighting more clearly the In connection with the materiality assess- key responsibility impacts of our opera- ment, we also updated our responsibility tions. The material impacts are described targets during 2020 by setting down our 4 BUSINESS REVIEW REPORT OF THE BOARD OF DIRECTORS FINANCIAL STATEMENTS GOVERNANCE REMUNERATION REPORT CORPORATE RESPONSIBILITY ANNUAL REPORT 2020 short-term and long-term goals. The Ex- Earlier targets – applying to 2020 – have ecutive Management Group decided on been included in the tables to report on new responsibility targets as part of the these indicators’ results. All in all, Fingrid strategy process and took into account succeeded in its 2020 corporate respon- CORPORATE RESPONSIBILITY the entire value chain, corporate respon- sibility targets. HIGHLIGHTS 2020 sibility’s strong link with the strategy and • Main grid developing: record number of substations and transmission CORPORATE RESPONSIBILITY business, and Fingrid’s ability to create From the customers’ perspective, the lines under construction AND SUSTAINABLE DEVELOPMENT value (find out more about our value cre- cost of electrical disturbances to the na- • Signed connection agreements enable the connecting of ation in the Annual Report’s Business Re- tional economy was record-low in 2020, Introduction 1,800 megawatts of wind power to the
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